The CEO of Wipro believes that demand for AI-powered IT services is rising

Artificial intelligence is increasingly underpinning technology deals that Indian software services companies are competing for, as enterprises move beyond pilot projects to large-scale AI deployments, Wipro CEO Srini Pallia said.

Speaking on the sidelines of the World Economic Forum’s annual meeting in Davos, Pallia said Wipro is bidding for a mix of small AI-led contracts as well as large and mega deals, as clients across industries are at different stages of AI maturity. He did not disclose deal sizes.

“We’ll go after both because different clients, different industries and different markets are at different maturity stages,” Pallia told the Reuters Global Markets Forum.

While acknowledging intense pricing pressure as AI compresses delivery timelines and reduces team sizes, Pallia said the shift to AI is likely to result in a higher number of smaller deals, even as larger programmes continue to emerge.

India’s $283 billion IT services industry has faced multiple quarters of weak demand as global clients curtailed technology spending amid geopolitical tensions and macroeconomic uncertainty, prioritising only essential and cost-reduction initiatives.

According to Pallia, enterprise AI spending is now moving from experimentation to accountability, with boards and chief executives increasingly demanding measurable returns. Wipro is positioning itself as both an AI consulting partner and an IT services provider to help clients manage this transition.

“For our clients, 2025 was more about deploying AI, proof of concepts and productivity benefits,” he said. “That’s dramatically changing in 2026 because boards and CEOs are asking where the return on investment is.”

Pallia said he does not expect a sharp increase in overall technology budgets, but noted that clients are optimising spending and adopting cost-saving technologies. AI-assisted software development can lower costs by about 25%, delivering significant productivity gains in coding and testing, he said.

“That will translate into new and more projects, which is why IT budgets are not going to shrink in the long run,” Pallia added.

Wipro in 2023 announced a three-year, $1 billion investment plan to strengthen its artificial intelligence capabilities.